eastAUSmilk FNQ Trip
Last week the spotlight shone on the FNQ dairy industry, showcasing its strengths and drawing attention to aspects which do not allow it to expand and flourish. The whole board of eastAUSmilk, their CEO, Eric Danzi and Government Relations Manager, Mike Smith, their staff and the President and CEO of Australian Dairy Farmers, Ben Bennett and Stephen Sheridan had the privilege to meet, visit and discuss the future direction of industry with the local dairy farmers. The team visited 10 local dairy farms to gain an insight into dairying in the tropics and the challenges it brings. Dinners were held giving the farmers a chance to meet and chat with the board, staff and ADF delegates. EastAUSmilk staff were able to assist with applications for the disaster recovery grant from the effects of Cyclone Jasper, resilience plans for the Drought Preparedness Grant and the opportunity of the On Farm Connectivity Grant. FNQ local dairy farmers support and enthusiasm was outstanding. Our visitors were also able to visit some of our renowned tourist spots and marveled at the picturesque Atherton Tablelands countryside and hospitality.
Geographically, Far North Queensland dairy farmers are isolated. With a yearly average above 1.2 metres rainfall with high humidity and one major processor, our isolation means that on all our inputs there is a freight component (about 25% above SEQ prices). This automatically has an impact on the cost of production/ profitability, herd fertility, lameness, incidence of clinical mastitis, increased SCC which all put increased pressure on production, herd management and milk pay bonuses. It cannot be emphasized enough that dairying in the tropics is like dairying in no other area.
Milk production and farm numbers have continued to decrease over the last 3 -5 years. Factory intake has decreased year on year of around 4 million litres annually and our farm numbers are down to 35. Supply to our local markets is short for significant periods of time throughout the year. This shortfall has been made up by shipping milk from Victoria and when it allows South East Qld. Putting in place a new milk system to allow FNQ farmers to produce this shortfall profitably has fallen on deaf ears. Remembering our area once produced 135 million litres annually with the longest milk run in the world, we have the capacity and knowledge to make up the difference if it were profitable.
Like everywhere else in Australia, competition for land use is high. This translates to large increases in land values. Competition in FNQ has come from beef production, other horticulture/tree crops, FIFO mine workers investing and retirees looking for lifestyle. When dairy farms leave the industry rarely do they come back as dairy farms and the opportunity for young farmers to purchase or lease farms is very limited.
Whatever the solution is to FNQ’s decreases in production and farm numbers it has to be recognized that dairying in the tropics has challenges, freight has a huge impact on profitability and if farms are profitable, farmer perceptions of our industry will have a significant impact.
Paul Newland, eastAUSmilk Board Member